Elon Musk’s net worth dropped by a staggering $33.9 billion on Friday, June 6, according to Bloomberg. The sharp decline came as a public feud between Musk and President Donald Trump escalated. This led to shaking investor confidence and casting uncertainty over Musk’s business empire.
The fallout marks one of the biggest single-day losses for any billionaire in recent history.
What was once a strong business-political alliance is now crumbling. Trump, speaking with reporters in Washington, said he felt “deep disappointment” in Musk, whom he previously supported. During his presidency, Trump offered Musk’s companies especially SpaceX and Tesla unusual levels of federal backing, often bypassing standard regulations.
That relationship is now in tatters.
The rift reportedly began over disagreements on space policy and Musk’s criticism of Trump’s 2024 campaign. Musk later escalated tensions by threatening to suspend SpaceX’s support for NASA missions. Though he reversed the decision within hours, the move rattled the markets.
Tesla’s stock plunged 14% in response, slashing Musk’s net worth to an estimated $335 billion. Since January, Musk has lost $98 billion, a 22.6% decline, amid mounting leadership concerns, legal issues, and political distractions.
Much of Musk’s wealth is tied to Tesla, where he owns about 13% of the company. He also holds hundreds of millions in stock options, but their future is uncertain. A Delaware court recently voided Musk’s 2018 compensation package, casting doubt on Tesla’s long-term leadership and pay structure.
Meanwhile, SpaceX, Musk’s most valuable private asset, worth an estimated $350 billion—remains under pressure. Musk controls about 42% of SpaceX through a trust.
His newer venture, xAI Holdings, born from a merger between his social platform X and AI startup xAI, is valued at $73 billion. But investors remain cautious, citing unclear synergies between the AI and social media elements.
To add to the risks, Musk has pledged a large portion of his Tesla and SpaceX shares to secure personal loans. If stock values keep dropping, those pledges could create serious financial strain.
